CASH-strapped Northamptonshire County Council has been given permission by the government to spend the proceeds from the sale of its new office building.

The green light to use capital receipts for day to day spending, believed to be without precedent, was given yesterday by the Secretary of State for Housing, Communities & Local Government, James Brokenshire, in response to recommendations from Commissioners sent in to stabilise the council.

Northamptonshire Council, which announced it had a £70 million shortfall, opened the brand new head office building at 1 Angel Square in Northampton in October last year.

Just four months later the stricken authority announced the £60 million sale and lease-back of the BDP-designed property.  It will now be able to use the income from that sale to help plug the gap in its spending.

The 22,000 sq metre development boasts a four storey atrium reception as well as a central courtyard with office space, informal meeting areas and touchdown areas grouped around it.

Cllr Matt Golby, leader of Northamptonshire Council, said: “I am delighted the commissioners have been successful in their request for a capital dispensation. This will enable us to use our own resources to tackle the £35m deficit from 2017-18 and replenish our reserves to put us on a sustainable financial position.”

Earlier this year, Northamptonshire County Council voted to scrap itself and two new unitary authorities will replace it from 2020.